Sections producers are raising prices by €20/tonne ($22) in the Italian market. The recent move aligns with the strategies of other EU section steelmakers, who successfully elevated values in Europe and achieved price increases in September, according to market sources.

The move is driven by widespread low inventory levels, as indicated by buyers in various European nations, including Italy, France, Spain, and Germany. In Italy, supply is significantly constrained due to the major producer reducing production levels, Kallanish notes.

In light of the current downturn in the steel market, "it is interesting that beam prices are experiencing an upward trend, even in Germany, where consumption for long products has significantly reduced in August," one market participant comments. In Italy, the first category of beams is priced between €780-800/t, including size extras. European producers are now offering for October delivery.

Certain buyers show scepticism regarding the sustainability of price increases in the current subdued market, even considering the significant reduction in supply and low inventory levels.

Reports indicate there are considerably low offers from Turkey appearing in Italy. A large buyer, hesitant to purchase at elevated prices due to subdued downstream demand and compressed margins, says he may buy imported material.

The Italian market has emerged from an extended summer break that saw reduced long steel production. In northern Europe, a large sections mill experienced a notable reduction in production during July and August, linked to a stoppage caused by an accident. This has led to demand exceeding supply, sources note.